* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Monday, September 1, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Country music star apologizes after drunken show ends with cops taking him down: ‘I’m not OK’ – PennLive.com

    Country Music Star Apologizes After Drunken Show Ends in Police Intervention: ‘I’m Not OK

    Comanche Nation Entertainment closes casino near Devol – KSWO 7News

    Comanche Nation Entertainment Closes Casino Near Devol in Surprising Move

    Erykah Badu Announces ‘Abi & Alan’ Album With The Alchemist Will Be Delayed – yahoo.com

    Erykah Badu Opens Up About the Delay of Her Highly Anticipated ‘Abi & Alan’ Album with The Alchemist

    If You Needed Some BTS Pics Of The Rock’s Tree Trunk Legs To Spice Up Your Day, We Got ‘Em – yahoo.com

    Need a Boost? Check Out These Epic BTS Shots of The Rock’s Tree Trunk Legs!

    Sabrina Carpenter’s pearl-clutching magic? Humor – CNN

    Sabrina Carpenter’s pearl-clutching magic? Humor – CNN

    South Park Is In Trouble And Needs To Change Course, Fast – yahoo.com

    South Park Faces Major Challenges and Must Adapt Fast to Survive

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    This Secret Technology Will Make The IPhone 17 Super Thin Air – VOI.ID

    How This Breakthrough Technology Will Make the iPhone 17 Incredibly Thin and Lightweight

    Gator football kicks off with excitement and new technology – WCJB | TV20

    Gator Football Kicks Off with Thrilling Action and Innovative Technology

    Marvell Technology (MRVL) Loses 18.6% as Growth Outlook Fails to Impress – Yahoo Finance

    Marvell Technology (MRVL) Loses 18.6% as Growth Outlook Fails to Impress – Yahoo Finance

    Propelling solar technology into a perovskite future – CORDIS

    Propelling solar technology into a perovskite future – CORDIS

    13 Top Technology Trends (2025) – Exploding Topics

    13 Game-Changing Technology Trends to Watch in 2025

    Japan’s legacy LCD and chip technology find new home in India – Nikkei Asia

    How Japan’s Breakthrough LCD and Chip Technologies Are Driving Innovation in India

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Country music star apologizes after drunken show ends with cops taking him down: ‘I’m not OK’ – PennLive.com

    Country Music Star Apologizes After Drunken Show Ends in Police Intervention: ‘I’m Not OK

    Comanche Nation Entertainment closes casino near Devol – KSWO 7News

    Comanche Nation Entertainment Closes Casino Near Devol in Surprising Move

    Erykah Badu Announces ‘Abi & Alan’ Album With The Alchemist Will Be Delayed – yahoo.com

    Erykah Badu Opens Up About the Delay of Her Highly Anticipated ‘Abi & Alan’ Album with The Alchemist

    If You Needed Some BTS Pics Of The Rock’s Tree Trunk Legs To Spice Up Your Day, We Got ‘Em – yahoo.com

    Need a Boost? Check Out These Epic BTS Shots of The Rock’s Tree Trunk Legs!

    Sabrina Carpenter’s pearl-clutching magic? Humor – CNN

    Sabrina Carpenter’s pearl-clutching magic? Humor – CNN

    South Park Is In Trouble And Needs To Change Course, Fast – yahoo.com

    South Park Faces Major Challenges and Must Adapt Fast to Survive

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    This Secret Technology Will Make The IPhone 17 Super Thin Air – VOI.ID

    How This Breakthrough Technology Will Make the iPhone 17 Incredibly Thin and Lightweight

    Gator football kicks off with excitement and new technology – WCJB | TV20

    Gator Football Kicks Off with Thrilling Action and Innovative Technology

    Marvell Technology (MRVL) Loses 18.6% as Growth Outlook Fails to Impress – Yahoo Finance

    Marvell Technology (MRVL) Loses 18.6% as Growth Outlook Fails to Impress – Yahoo Finance

    Propelling solar technology into a perovskite future – CORDIS

    Propelling solar technology into a perovskite future – CORDIS

    13 Top Technology Trends (2025) – Exploding Topics

    13 Game-Changing Technology Trends to Watch in 2025

    Japan’s legacy LCD and chip technology find new home in India – Nikkei Asia

    How Japan’s Breakthrough LCD and Chip Technologies Are Driving Innovation in India

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

How much have First Home Grants really been helping buyers?

May 22, 2024
in Business
How much have First Home Grants really been helping buyers?
Share on FacebookShare on Twitter

No caption

In 2023, about 12,168 applications for a first home grant were approved.
Photo: 123rf

It is understood that the government plans to drop First Home Grants and instead put the money towards more social housing.

But what is the scheme, how does it work, and how much has it really been helping?

Here’s a rundown:

What is the First Home Grant, anyway?

The First Home Grant is the latest iteration of help for first-home buyers who use their KiwiSaver funds to buy a house.

To qualify, buyers have to be over 18, earn less than the income caps ($95,000 in the last year as a single person, after tax, or $150,00 for a couple or those with dependants), and have been contributing to KiwiSaver for at least three years at a rate of at least 3 percent of income or a minimum $1000 a year.

They also must buy within the price cap for their area, which varies around the country from $400,000 for existing properties in the Far North to $925,000 for new homes in Wellington and Queenstown.

This incentive has been around in various forms as long as KiwiSaver itself and was part of the initial 2005 KiwiSaver model. Previous versions were called the KiwiSaver deposit subsidy and KiwiSaver HomeStart Grant.

How much can you get?

Buyers of existing homes can get $1000 for each of the three years they’ve paid into the scheme – and up to $5000 if they have been contributing for at least five years. This rate is doubled for new builds.

That means a couple who both qualify can potentially access $20,000 for a new build, or $10,000 for an existing property.

How many people use the scheme?

In 2023, about 12,168 applications for a first home grant were approved.

Corelogic data shows first-home buyers made about 17,000 property purchases in that year.

But in many cases, two applications could be made for the purchase of one property. Auckland had the bulk of approved applications.

Mortgage adviser Glen McLeod said he dealt with a lot of applications using this grant.

Some people who could afford to spend more deliberately held themselves back to the price caps of their area to be able to qualify, he said.

It could also have a big impact for people who were trying to get together a 5 percent deposit to qualify for the government-backed First Home Loan. “It definitely does make a difference.”

Does it help?

As prices have risen the impact of $5000 or $10,000 on a deposit will have lessened.

In July 2007, first-home buyers were paying a median $299,000. A 20 percent deposit would have been about $60,000. But that was before the introduction of loan-to-value ratios and buyers could sometimes get loans with much smaller deposits.

Now, first-home buyers are paying about a median $700,000 for their homes, which means a deposit of about $140,000 if they require 20 percent.

Infometrics chief executive and principal economist Brad Olsen said the grants would have helped some buyers.

“From a purely economic theoretical lens, the First Home Grants were effectively just a subsidy on housing for a certain group that generally bids up the price of housing – so good for those people that get the grant, but overall increases house prices more than without the grant.

“The solution to first-home buyers having a harder time given higher house prices is to expand supply rather than to subside a scarce resource.”

But he said that took time so the grants were a practical solution.

“For some households they would’ve been reasonably important – a first-home buyer that meets some of the requirements could probably get a 10 percent deposit – for a house worth $400,000 to $600,000, getting up to $10,000 for a two-person household that’ve been contributing to KiwiSaver, that already has a 5 percent deposit, that First Home Grant could be worth up to a quarter of a 10 percent deposit or an eighth of a 20 percent deposit. So it likely did make a difference to those who were on the margins of having the deposit needed, if they met the other affordability requirements.”

Corelogic chief property economist Kelvin Davidson said the size of the grants probably meant they were enough to “finish the job”.

“It’s a nice top-up of course, but I suspect that more important factors for first-home buyers have been KiwiSaver, access to low-deposit loans at the banks and reduced activity from other buyer groups. Lower house prices have certainly helped too, although whatever the supports that first-home buyers have been getting, they too have had to face up to much higher mortgage rates.

“So in a nutshell, the grants are likely to have tipped the balance for some people, but I’m also not sure that if they were taken away we’d see the first-home buyer presence in the market collapse.”

What now?

Olsen said if it were true that the First Home Grant money was being recycled into social housing, it would not immediately or directly help first-home buyers.

“It might, at the margins, increase housing stock levels, and might free up a house in the private market that a first-home buyer can buy. But the switch from First Home Grants to social housing won’t feel like it’s supporting first-home buyers nearly as much.”

Davidson said anything that would help new build construction come to market over the long term would be a bigger factor than the absence or otherwise of the grants.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : RNZ – https://www.rnz.co.nz/news/national/517487/how-much-have-first-home-grants-really-been-helping-buyers

Tags: businessFirstgrants
Previous Post

Efficiency Unlocked: Novel Catalyst Model Sets New Standards in Fuel Cell Technology

Next Post

Risk of uninsured buildings if FENZ levy changes go ahead

ECB’s Lagarde warns of risk to world economy via Trump interference on Fed – Reuters

ECB’s Lagarde warns of risk to world economy via Trump interference on Fed – Reuters

September 1, 2025
The Resilient Engine: Investing in Poland’s Outperforming Economy Amid Global Slowdown – AInvest

The Resilient Engine: Why Investing in Poland’s Booming Economy Is a Smart Move Amid Global Slowdown

September 1, 2025
Country music star apologizes after drunken show ends with cops taking him down: ‘I’m not OK’ – PennLive.com

Country Music Star Apologizes After Drunken Show Ends in Police Intervention: ‘I’m Not OK

September 1, 2025
Arts to promote mental health goal of new University of Michigan clinical program – MLive.com

Innovative University of Michigan Program Harnesses the Arts to Enhance Mental Health

September 1, 2025
Meet the man defending Trump’s political adversaries – ABC News

Meet the man defending Trump’s political adversaries – ABC News

September 1, 2025
Sky High Farm’s Biennial Blends Art, Agriculture and Ecological Urgency – observer.com

Sky High Farm’s Biennial Blends Art, Agriculture and Ecological Urgency – observer.com

September 1, 2025

After 150 Job Applications and Rescinded Offers, Computer Science Grads Face an Unforgiving Job Market

September 1, 2025
Proportion of US students taking chemistry fails to keep pace with other science disciplines – Chemistry World

Why Fewer US Students Are Choosing Chemistry Compared to Other Sciences

September 1, 2025
Going zero-waste for a month opened my eyes — here are 7 lessons I wish I knew sooner – VegOut

7 Eye-Opening Lessons I Learned from Living Zero-Waste for a Month

September 1, 2025
This Secret Technology Will Make The IPhone 17 Super Thin Air – VOI.ID

How This Breakthrough Technology Will Make the iPhone 17 Incredibly Thin and Lightweight

September 1, 2025

Categories

Archives

September 2025
MTWTFSS
1234567
891011121314
15161718192021
22232425262728
2930 
« Aug    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (801)
  • Economy (820)
  • Entertainment (21,700)
  • General (16,798)
  • Health (9,861)
  • Lifestyle (834)
  • News (22,149)
  • People (821)
  • Politics (828)
  • Science (16,030)
  • Sports (21,318)
  • Technology (15,800)
  • World (801)

Recent News

ECB’s Lagarde warns of risk to world economy via Trump interference on Fed – Reuters

ECB’s Lagarde warns of risk to world economy via Trump interference on Fed – Reuters

September 1, 2025
The Resilient Engine: Investing in Poland’s Outperforming Economy Amid Global Slowdown – AInvest

The Resilient Engine: Why Investing in Poland’s Booming Economy Is a Smart Move Amid Global Slowdown

September 1, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version